Canada Seeking Answers Regarding U.S. Farmer Support Funds

Canada wants the U.S. to explain an additional $30 billion made available to support farmers harmed by trade woes, and how the U.S. might distribute the funds. Canada made the request through the World Trade Organization last week.

Canada’s written question asked the United States to explain the U.S. Bipartisan Budget Act of 2018, in which Congress lifted certain restrictions on the U.S. Agriculture Secretary’s authority to use Commodity Credit Corporation funds, according to Reuters. The Corporation has broad authority to make loans and direct payments to U.S. farmers when prices for agricultural goods are low.

The White House has previously indicated that it is looking at ways to use the Commodity Credit Corporation funds to offset farm income losses in a trade war with China or others.

Canada also wants to know if Washington can use the funds to buy domestic surpluses of agricultural products.